Automakers operating in the country exported 5.3 million vehicles last fiscal year, indicating growing acceptance of India-made cars, commercial vehicles, two-wheelers and three-wheelers in international markets, the Economic Survey said Thursday.
Vehicle exports continued to rise, growing in strong double-digits in the first half of 2025–26.
The Survey said the momentum in the automotive market reflects a broad-based recovery in demand following the pandemic. Consumer demand has lifted both production and domestic sales.
Over a longer horizon, the scale of expansion is even starker. Vehicle production has risen by nearly 33% over the past decade, from FY15 to FY25, the Survey noted. Backed by a deep manufacturing base and an extensive auto component ecosystem, the sector now supports over 30 million direct and indirect jobs and contributes close to 15% of India’s total GST collections.
The Survey held the automobile industry as a core engine of economic growth, pointing out that India is the world’s largest market for two-wheelers and three-wheelers, and the third-largest globally for passenger and commercial vehicles combined.
Government policies have played a key role in sustaining this trajectory, particularly in electric mobility. Schemes such as the Production-Linked Incentive (PLI) for automobiles and auto components, the PLI for Advanced Chemistry Cell battery storage, PM E-DRIVE, and the PM e-Bus Sewa Payment Security Mechanism have collectively accelerated electric vehicle registrations in recent years.
The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC), notified in March 2024, has further strengthened the sector’s growth outlook, the Survey said.
